Administering Information Security in Microsoft 365

Here you have the best Microsoft SC-401 practice exam questions

  • You have 264 total questions across 53 pages (5 per page)
  • These questions were last updated on March 12, 2026
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Question 1 of 264
DRAG DROP -

Case Study -

Instructions -
This is a case study. Case studies are not timed separately from other exam sections. You can use as much exam time as you would like to complete each case study. However, there might be additional case studies or other exam sections. Manage your time to ensure that you can complete all the exam sections in the time provided. Pay attention to the Exam Progress at the top of the screen so you have sufficient time to complete any exam sections that follow this case study.
To answer the case study questions, you will need to reference information that is provided in the case. Case studies and associated questions might contain exhibits or other resources that provide more information about the scenario described in the case. Information provided in an individual question does not apply to the other questions in the case study.
A Review Screen will appear at the end of this case study. From the Review Screen, you can review and change your answers before you move to the next exam section. After you leave this case study, you will NOT be able to return to it.

To start the case study -
To display the first question in this case study, select the "Next" button. To the left of the question, a menu provides links to information such as business requirements, the existing environment, and problem statements. Please read through all this information before answering any questions. When you are ready to answer a question, select the "Question" button to return to the question.

Overview -
Contoso, Ltd. is a consulting company that has a main office in Montreal and three branch offices in Seattle, Boston, and Johannesburg.

Existing Environment -

Microsoft 365 Environment -
Contoso has a Microsoft 365 E5 tenant. The tenant contains the administrative user accounts shown in the following table.
Exam SC-401: Question 1 - Image 1
Users store data in the following locations:

SharePoint sites -

OneDrive accounts -

Exchange email -

Exchange public folders -

Teams chats -

Teams channel messages -
When users in the research department create documents, they must add a 10-digit project code to each document. Project codes that start with the digits 999 are confidential.

SharePoint Online Environment -
Contoso has four Microsoft SharePoint Online sites named Site1, Site2, Site3, and Site4.
Site2 contains the files shown in the following table.
Exam SC-401: Question 1 - Image 2
Two users named User1 and User2 are assigned roles for Site2 as shown in the following table.

Exam SC-401: Question 1 - Image 3
Site3 stores documents related to the company's projects. The documents are organized in a folder hierarchy based on the project.
Site4 has the following two retention policies applied:

Name: Site4RetentionPolicy1 -
Locations to apply the policy: Site4
Delete items older than: 2 years
Delete content based on: When items were created

Name: Site4RetentionPolicy2 -
Locations to apply the policy: Site4
Retain items for a specific period: 4 years
Start the retention period based on: When items were created
At the end of the retention period: Do nothing

Problem Statements -
Management at Contoso is concerned about data leaks. On several occasions, confidential research department documents were leaked.

Requirements -

Planned Changes -
Contoso plans to create the following data loss prevention (DLP) policy:

Name: DLPpolicy1 -
Locations to apply the policy: Site2
Conditions:
Content contains any of these sensitive info types: SWIFT Code

Instance count: 2 to any -
Actions: Restrict access to the content

Technical Requirements -
Contoso must meet the following technical requirements:
All administrative users must be able to review DLP reports.
Whenever possible, the principle of least privilege must be used.
For all users, all Microsoft 365 data must be retained for at least one year.
Confidential documents must be detected and protected by using Microsoft 365.
Site1 documents that include credit card numbers must be labeled automatically.
All administrative users must be able to create Microsoft 365 sensitivity labels.
After a project is complete, the documents in Site3 that relate to the project must be retained for 10 years.
You need to meet the technical requirements for the Site1 documents.
Which three actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.
Exam SC-401: Question 1 - Image 4
Answer

Suggested Answer

Exam SC-401: Question 1 - Image 5
Question 2 of 264
Case Study -

Instructions -
This is a case study. Case studies are not timed separately from other exam sections. You can use as much exam time as you would like to complete each case study. However, there might be additional case studies or other exam sections. Manage your time to ensure that you can complete all the exam sections in the time provided. Pay attention to the Exam Progress at the top of the screen so you have sufficient time to complete any exam sections that follow this case study.
To answer the case study questions, you will need to reference information that is provided in the case. Case studies and associated questions might contain exhibits or other resources that provide more information about the scenario described in the case. Information provided in an individual question does not apply to the other questions in the case study.
A Review Screen will appear at the end of this case study. From the Review Screen, you can review and change your answers before you move to the next exam section. After you leave this case study, you will NOT be able to return to it.

To start the case study -
To display the first question in this case study, select the "Next" button. To the left of the question, a menu provides links to information such as business requirements, the existing environment, and problem statements. Please read through all this information before answering any questions. When you are ready to answer a question, select the "Question" button to return to the question.

Overview -
Contoso, Ltd. is a consulting company that has a main office in Montreal and three branch offices in Seattle, Boston, and Johannesburg.

Existing Environment -

Microsoft 365 Environment -
Contoso has a Microsoft 365 E5 tenant. The tenant contains the administrative user accounts shown in the following table.
Exam SC-401: Question 2 - Image 1
Users store data in the following locations:

SharePoint sites -

OneDrive accounts -

Exchange email -

Exchange public folders -

Teams chats -

Teams channel messages -
When users in the research department create documents, they must add a 10-digit project code to each document. Project codes that start with the digits 999 are confidential.

SharePoint Online Environment -
Contoso has four Microsoft SharePoint Online sites named Site1, Site2, Site3, and Site4.
Site2 contains the files shown in the following table.
Exam SC-401: Question 2 - Image 2
Two users named User1 and User2 are assigned roles for Site2 as shown in the following table.

Exam SC-401: Question 2 - Image 3
Site3 stores documents related to the company's projects. The documents are organized in a folder hierarchy based on the project.
Site4 has the following two retention policies applied:

Name: Site4RetentionPolicy1 -
Locations to apply the policy: Site4
Delete items older than: 2 years
Delete content based on: When items were created

Name: Site4RetentionPolicy2 -
Locations to apply the policy: Site4
Retain items for a specific period: 4 years
Start the retention period based on: When items were created
At the end of the retention period: Do nothing

Problem Statements -
Management at Contoso is concerned about data leaks. On several occasions, confidential research department documents were leaked.

Requirements -

Planned Changes -
Contoso plans to create the following data loss prevention (DLP) policy:

Name: DLPpolicy1 -
Locations to apply the policy: Site2
Conditions:
Content contains any of these sensitive info types: SWIFT Code

Instance count: 2 to any -
Actions: Restrict access to the content

Technical Requirements -
Contoso must meet the following technical requirements:
All administrative users must be able to review DLP reports.
Whenever possible, the principle of least privilege must be used.
For all users, all Microsoft 365 data must be retained for at least one year.
Confidential documents must be detected and protected by using Microsoft 365.
Site1 documents that include credit card numbers must be labeled automatically.
All administrative users must be able to create Microsoft 365 sensitivity labels.
After a project is complete, the documents in Site3 that relate to the project must be retained for 10 years.
You need to meet the technical requirements for the creation of the sensitivity labels.
To which user or users must you assign the Sensitivity Label Administrator role?
Answer

Suggested Answer

The suggested answer is B.

Community Votes32 votes
BSuggested
75%
E
25%
Question 3 of 264
You have a Microsoft 365 E5 subscription that contains a Microsoft Teams channel named Channel1. Channel1 contains research and development documents.
You plan to implement Microsoft 365 Copilot for the subscription.
You need to prevent the contents of files stored in Channel1 from being included in answers generated by Copilot and shown to unauthorized users.
What should you use?
Answer

Suggested Answer

The suggested answer is D.

Community Votes37 votes
DSuggested
57%
A
41%
C
3%
Question 4 of 264
DRAG DROP -
You have a Microsoft 365 E5 subscription that uses Microsoft Defender for Cloud Apps.
You plan to deploy a Defender for Cloud Apps file policy that will be triggered when the following conditions are met:
A file is shared externally.
A file is labeled as internal only.
Which filter should you use for each condition? To answer, drag the appropriate filters to the correct conditions. Each filter may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
Exam SC-401: Question 4 - Image 1
Answer

Suggested Answer

Exam SC-401: Question 4 - Image 2
Question 5 of 264
HOTSPOT -
You have a Microsoft 365 E5 subscription that contains three DOCX files named File1, File2, and File3.
You create the sensitivity labels shown in the following table.
Exam SC-401: Question 5 - Image 1
You apply the labels to the files as shown in the following table.
Exam SC-401: Question 5 - Image 2
You ask Microsoft 365 Copilot to summarize the files, and you receive the results shown in the following table.
Exam SC-401: Question 5 - Image 3
For each of the following statements, select Yes if the statement is true. Otherwise, select No.
NOTE: Each correct selection is worth one point.
Exam SC-401: Question 5 - Image 4
Answer

Suggested Answer

Exam SC-401: Question 5 - Image 5

About the Microsoft SC-401 Certification Exam

About the Exam

The Microsoft SC-401 (Administering Information Security in Microsoft 365) validates your knowledge and skills. Passing demonstrates proficiency and can boost your career prospects in the field.

How to Prepare

Work through all 264 practice questions across 53 pages. Focus on understanding the reasoning behind each answer rather than memorizing responses to be ready for any variation on the real exam.

Why Practice Exams?

Practice exams help you familiarize yourself with the question format, manage your time, and reduce anxiety on the test day. Our SC-401 questions are regularly updated to reflect the latest exam objectives.